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Grendene: results in line with 2017

Jan 3, 2019 Brazil
Grendene: results in line with 2017
The Brazil-based footwear group announced results for the first 9 months of 2018 in line with similar period in 2017. A strong decline in the net profit was caused by a fall in the interest rates
Net revenue for Grendene was flat in the third quarter (+0.5%), and gross revenue increase by 1.2%.  In the first 9 months of the financial year, net revenue increased by 2.9%, compared to similar period in 2017. Gross revenue went up by 3.2% in the period, mainly driven by the performance of exports (+5.0%).

Compared to the first 9 months of 2017 the number of pairs sold was up by 0.9%, mainly reflecting the increase in the number of pairs sold in the domestic market (+4.1% which corresponds to roughly extra 3.6 million pairs sold), as exports declined by 8.8% (less 2.6 million pairs sold in the external markets). The situation in the last quarter of this period was harder with a decrease in the volume of pairs sold (-2.5%), mainly the result of a drop of 17.7% in the volume of pairs exported.

Also, in exports, in spite of the considerable reduction in the number of pairs shipped, their share of Brazilian exports has increased from 32.8% in the first 9 months of 2017 to 33.5% in first 9 months in 2018.

Net profit declined by 23.4% and by 18.6%, respectively, in the third quarter of the year and in the first nine months of the year. The lower interest rates resulted in our financial revenue being lower, and we did not achieve the growth in the operational result that would have offset this effect.

The exchange rate had a very strong positive impact, seen in the higher export revenue per unit in Reais (up by 27.8% Year-on-Year in the third quarter and up by 15.1% Year-on-Year in the accumulated for the first 9 months).


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